The Bond Market Is Unhappy With the Federal Reserve’s Unwillingness To Fight Inflation

CEI’s Steve Swedberg was cited by Reason in relation to the Federal Reserve and their response to inflation.

But if the Federal Reserve won’t raise interest rates to combat inflation, is it just admitting that inflation has won? At the very least, it seems like Warsh is letting the Federal Reserve take a backseat to other indicators in the market.

Interest rates set by the Federal Reserve are “increasingly out of touch with market realities,” said Steve Swedberg, a finance and monetary policy analyst for the Competitive Enterprise Institute, in a statement. “If the Fed continues to maintain rates that are out of step with broader credit markets while consumer spending remains resilient, inflation will keep hitting Americans where it hurts most: their wallets.”

Read the full article at Reason.